Gwangyang City: "Fiscal Deficit of 65 Billion Won... Difficult to Provide Livelihood Recovery Support Fund"

“Implementing expenditure restructuring...
Support funds will be paid within my term after restoring fiscal soundness”

Gwangyang City in Jeonnam Gwangju Unified Metropolitan City has stated its position regarding the payment of the Livelihood Economic Recovery Support Fund, explaining the city’s current financial conditions to citizens and announcing that it will continuously review payment plans, taking into comprehensive consideration the status of securing funding.

On September 7, Mayor Park Sunghyeon of Gwangyang City held a press conference and said, “We are well aware that citizens’ livelihoods are becoming more difficult due to continued inflation and contraction in consumption. I feel especially heavy-hearted when thinking of the realities faced by small business owners and the self-employed, who are suffering from decreased sales and pressures such as rent and labor costs.”

Regarding the distribution of livelihood support funds, the city explained its financial conditions to the citizens and stated that it will continuously review the payment plan, taking into comprehensive consideration the status of securing resources. Provided by Gwangyang City

The purpose of the Livelihood Economic Recovery Support Fund is to provide support to citizens through the Gwangyang Love Gift Certificate Card and other means, thereby easing the burden of daily life for residents and revitalizing the local commercial districts by stimulating local spending.

However, considering Gwangyang City’s current financial conditions, it is difficult to make an immediate decision on the payment of the support fund. After reviewing the city’s finances since the launch of the ninth municipal administration, a fiscal deficit of approximately 65 billion won has been identified, and as a result, the city is currently carrying out intensive expenditure restructuring measures.

In particular, when taking into account not only the essential resources needed for core projects directly related to citizens’ lives—such as welfare, safety, and urban infrastructure maintenance—but also the city’s share due to national and provincial subsidy projects, there are not sufficient discretionary funds available at this time.

Mayor Park stressed, “My wish to provide support funds to our citizens remains unchanged. However, the most urgent task for Gwangyang City right now is not to expand new projects, but to escape from the fiscal deficit and restore sound financial management.”

The city is also cautiously reviewing ways to raise support funds by issuing local government bonds, but given current fiscal conditions, this is seen as unfeasible at present.

Nonetheless, Gwangyang City clearly stated that it has not abandoned the Livelihood Economic Recovery Support Fund payment plan. The city will continue to look for possibilities to secure additional funding in the remaining period of this year, and if resources are secured, will actively consider making the payments within this year.

If it is difficult to distribute the payments this year, the city will also consider paying them after next year, depending on future fiscal conditions, or implementing a phased payment plan according to the status of available funds.

To achieve this, the city will intensify expenditure restructuring, such as reducing unnecessary spending and comprehensively reassessing project priorities.

The necessity and urgency of each project will be reviewed from scratch; projects judged to have low priority or less urgency will be adjusted, and the secured financial resources will be preferentially directed toward vital areas, such as citizens’ livelihood stabilization and local economic recovery.

Mayor Park said, “Only after Gwangyang City’s finances are restored to soundness can the Livelihood Economic Recovery Support Fund truly be of practical help to both citizens and small business owners. I will not avoid any necessary action required for fiscal restoration and will pursue it with responsibility.”

He continued, “I feel sincerely sorry that we cannot provide the support funds to citizens ahead of the Chuseok holiday. Going forward, we will exhaust every possibility to secure additional funding and seek a payment plan that can be of genuine help to citizens.”

In particular, Mayor Park reiterated his commitment, saying, “The Livelihood Economic Recovery Support Fund will be delivered to citizens within my term, after sound fiscal management has been responsibly restored.”

Mayor Park also stated, “I will restore the city’s finances through robust expenditure restructuring and fiscal innovation, making this financial normalization a turning point for a new leap forward for Gwangyang City.”

He added, “Once again, I apologize for not being able to provide the support funds before the holiday. I hope all citizens enjoy a warm and pleasant Chuseok with their families and neighbors.”

This content was produced with the assistance of AI translation services.